Advantages of a Reverse Mortgage

The biggest advantages are that there are no credit-worthiness or income requirements and instead of making a payment on your loan, you receive monthly payments, a lump sum payout, or a line of credit. Money from a reverse mortgage can provide seniors with the financial security they need, and it can enable them to enjoy their retirement years, while allowing them to remain in their home.

Get cash out or pay off debt and make no payments:

No monthly payments are due for as long as the homeowner lives in the home

Pays off existing mortgages on the home

Credit score and income are not considered

Proceeds are not taxable

Offers security:

Allows the homeowner to stay in the home permanently

With minimal requirements, the lender can never take your home

No change to the title – lender receives only a mortgage lien

The extra money may help you to maintain your independence and security

You have control:

You decide how much equity you will use or leave to your heirs

You control how much, or how little, money you take out of your equity

Leave the vast majority or very little of your equity

Flexible terms for receiving payments are available

Heirs inherit the home and keep the remaining equity after the balance of the reverse mortgage is paid off

Fair and safe way to access your equity:

Government designed, highly regulated, and extensively disclosed mortgage program

Independent counseling is always required before the loan process is complete

The lender is repaid only what it is owed

Can’t get “upside down”, so the heirs will never owe more than the home is worth.

The interest rate is generally lower than traditional mortgages and home equity loans

Conservative lending limits generally prevent you from using all of your home equity